A Detailed Sample Report on Strategic Management

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A Detailed Sample Report on Strategic Management

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Table of Contents INTRODUCTION ..........................................................................................................................1 MAIN BODY...................................................................................................................................1 Analysis of Internal and External environment of Tesco ............................................................1 Analysis of organization's Strategic position with the competitors in the market ......................3 Impact of the strategies on the organization ...............................................................................4 Strategic capabilities of Tesco ....................................................................................................4 Types of the various stakeholders ..............................................................................................6 CONCLUSIONS..............................................................................................................................8 RECOMMENDATIONS .................................................................................................................8 REFERENCES ................................................................................................................................9

A Sample Report On Strategic Management

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INTRODUCTION Strategic management is the continuous process of planning, monitoring and analyzes the various aspects which are necessary for any organization to meet the goals and objectives. This report critically evaluates the various elements which are needed to analyze the various elements of the environment in which the organization operates (Witcher and Chau, 2010). Tesco is the largest supermarket chain in the retail industry which also diversifies in various other sectors to meet the goals and objective. It also provides the online services through the subsidiary. Tesco has been chosen to review and analyzes the various environment factors and forces which help them to design the proper framework which defines the organization objectives and policies and goals which are attained with the proper strategy adoption (Beer and et.al, 2005). They also adopt the various unique methods and strategies to sustain in the industry for the long run and accomplish the goals and meet the expectations of the various stakeholders by delivering the valuable outcomes to them. They restructure the strategies to compete with the competitors to achieve better outcomes by meeting the demand of the customers.

MAIN BODY Analysis of Internal and External environment of Tesco Environment analysis is the strategic tool which identifies the internal and the external elements which are necessary to align the strategies. As per the today's work environment organization faces lots of changes every day (Chrisman, Chua and Sharma, 2005). There is major diversity in the work environment which determines the various factors which are beyond the control of the organization. Tesco is influenced by the various environmental factors and constantly analyze the work environment to accept the changes to meet the objectives. There are many strategic analysis tools that can be used by the organization to attain the goals and objectives. The major analysis tool which is used by Tesco to determine the external elements of the environment is the PESTLE analysis. PESTLE analysis consists of the various factors which influence the work environment of Tesco. They affect the functioning in one or the other manner (Nag, Hambrick and Chen, 2007). It is discussed in six common factors which influence the external environment:

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Political factors: These factors determine the extent to which they have political aspects influence the functioning of the organization. There are various aspects which refer to the stability of the environment and the various attributes. These factors reflect the various tax policies and the government policies that are to be followed by the organizations. Tesco has to follow the set pattern to flourish in the market by following the rules and regulations. Economic factors: These factors determine the economic structure which includes the various aspects related to the investment and the other factors to determine the growth. These factors determine the rates at which they formulate the economy of the organization. Tesco determine the various economic factors to enhance their efficiency to meet the requirement of the target market as well as the availability of the finance. Social factors: These factors determine the structure in which the organization operates. Tesco ascertain all the aspects such as age distribution, culture attributes, and the trends to meet the requirement of customer. They also modify their strategies to adapt to the trends which are distinctive and influence the work environment. Technological factors: As the technology is advancing on the larger span. It influences the working environment of the organization (Schilling, 2005). Tesco adopts the changes to stay updated with the changes in the technology to meet the present trends. Legal factors: These are those aspects which affect the environment in which the organization operates with the legal obligations. Tesco also follow regulations to operate and properly analyze the legal factors and formulate the business strategy which compliance every aspect of the business. Environmental factors: These factors involve the changes in the environment in which it operates. Changes in the climate also affect the trade. Tesco properly manage the various aspects to meet the changes of the customer need as per the change in the environmental conditions. Internal environment analysis determines those aspects which are executed to meet the objectives which are ascertained by the organization. Tesco has the various internal factors which determine its functioning for the attainment of the goals. Organizational and operational factors: It includes the factors which affect the performance of the organization internally by the various operations which are carried out. Tesco

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properly evaluate all the aspect which determine the operations and does not affect the supply chain and smoothly carry out the functioning to meet the requirement of the customers. Innovation factors: In order to sustain in the long run they have to bring innovation for being a step ahead. Tesco adopts the various innovative aspects to ascertain the growth by improving the work environment and formulating the strategies to meet the requirement of the customers in an innovative manner. Analysis of organization's Strategic position with the competitors in the market Strategic position is concerned with the aspect that how the strategies influence the framework in which the organization operates (Henry, 2011.). Tesco consider various environmental aspects which determine the capabilities to fit in the designed framework. They imply various elements to determine the strategic position in the business environment. Porter's five forces model analysis also help to analyse the information to formulate the strategies to attain the objectives. With the model, critical analysis of the market is done to ascertain their position to compete with the other competitors (Schot and Geels, 2008.). Tesco have many competitors who operate in the same sector. This reflects the marketing mix which they adopt to maximize their appeal to the large number of the customer and build up strong strategic position in the market. The goal of the strategic position is to differences as per the customer preference. The strategic position analysis consist of the competitors analyze as it is the critical aspect which help to determine the competencies to perform various function in the market. It is the critically consider the 5 aspects which affect the business are: Supplier power: As it is the essential element on which the functioning of the organization is determined. Tesco ensure that they get the essential resource from the effective suppliers to meet the demand of the customer. They concentrate that they have the efficient supplier which are able to provide the resource on time (Lees, 2008). As they help in holding the customer and not let them go and adopt the products of the competitors. Buyer power: Tesco ensure to provide to meet the requirement of the customer to the greater extent as they can easily switches from the one product to another which they are offering. They have to properly evaluate what are the requirement and effectively formulate the growth strategies to meet the requirement so they sustain in long run and also offer various schemes so that they does not switches to the competitors products. Buy our best strategic management assignment writing services for university scholars to secure top grades.


Competitive rivalry:

Tesco operates in the large competitive market as Asda and

Sainsbury also operates in the same sector. The major competition occurs on the price as they are offering the same product and services to the customers. Tesco formulates its policy in order to be more unique in offering the product which will enhance their customer loyalty and would be able to maintain the position. Threats of substitution: As there is intense competition in the market and the buyer have the alternatives. Tesco also faces this threat as Asda and Sainsbury also make the availability of the products and services as per the requirement of customers which weakens the position of Tesco. Proper diversification strategies should be formulated with the forecasting of the demands of the customers to sustain in long run. Threat of new entrants: As the market is growing at a wider span and the industry is becoming attractive for the new entrants. Tesco has the threat of the new entrants as the customer frequently switches between the competitors. As new business easily enter and weak the performance of the organization which are leading in the particular sector. The firms are attracted by the profits and this make the involvement of new firms in the market. Tesco needs to establish the brand equity to retain its market for long period by adopting the acquisition strategy in order to gain the competitive advantage. Impact of the strategies on the organization Tesco has the very influencing impact on the various aspects which are ascertained to meet the requirement of the customer on the various criteria to determine the objectives are attained in an effective and efficient manner. Tesco ensure that the product and services which they are offering is suitable to the needs and requirement of the customer. The proper evaluation of the diversification strategy is done to ensure that they are able to meet the requirement of the customer. They also adopt the growth strategy to ensure that they provide the customer with the more diversified products and services. They find the place in which they can effectively accomplish the requirement of the customer. The acquisition strategy also entitles to acquire the competitive advantage by satisfying the customer (Thompson and Martin, 2005). The strategy implementation ensures the long run of the Tesco. They also modify the supply chain by offering the free home delivery of the product which helps to expand the customer interest to sustain as they are provided with different facilities. They also ascertain the various aspects related to the Buy our best strategic management assignment writing services for university scholars to secure top grades.


price as they offer a wide range of the product and accordingly the customer can obtain it. This also impacts the sustainability of the customer as they are able to acquire the product at a single space. Strategic capabilities of Tesco In order to find out the strategic capabilities of the Tesco we are going to do Swot analysis of the Tesco. In this strength, weakness, opportunities and threats of the company is analysis and are the necessary measure taken by the company in order to overcome the problem and what measure company considered order to grab the opportunities and increase its strength (Postma and Liebl, 2005.). STRENGTH(S) Following are the major strength of the company:•

Tesco major strength is that it is widely spread in various markets of Europe, Asia, South and North America, North Africa.

Compare to other companies stores Tesco stores are relatively large selling broader variety of non-foods products. Some of the products sold out by the Tesco are books, electronics, petrol, apparels, telecom and internet services and many more.

Strength of the company is that it uses Multi Format strategy. Multi Format strategy means that it has opened variety of supermarkets, hypermarkets, hard discount stores and convenience stores.

One of its major strength is that it builds its own brand image and sale out various products in its own name.

WEAKNESS (W) Following are the major weakness of the company. •

Recent controversies faced by the company affects its brand image.

Tesco profit making level has also decreases due to the bad debts, household insurance demand and credit card debt.

Tesco weak presence in the UK has also reduces its profit generating margin.

OPPORTUNITIES (O) Following are the major opportunities of the company. Buy our best strategic management assignment writing services for university scholars to secure top grades.


One of the major opportunities for the company which he should grab is that it starts focus on increasing its brand image.

They should tries to enter into the emerging markets through the acquisition of tie-ups or by forming smaller chains

Another opportunity which can assist the company to necessary its profit margin is that it should tries to boost its non-food product sales.

Company should focus on rebranding its High-grade stores. This can be done by using various promotional methods like advertising, sales promotions, publicity and so on.

THREATS (T) •

Increasing cost of raw material of both food and non-food products will affect the overall profit margin of the company.

Another threat which is faced by the company is increased number of its competitors in lieu of other companies retail store formats.

Continuous change in the buying behaviour of the customers affects the working of the company. Company is further required to analysis the market properly.

The weaknesses and threats are the major key mechanism that affects the working of the company. Similarly, the opportunities are the key directions that company can grab in order to achieve its desired goals, while strength are those elements which turn out to be one of the competitive advantage for the company (Nerur, Rasheed and Natarajan, 2008.). Therefore, Tesco should tries to grab the various opportunities present in the market in order to increase its brand image and profit margin. Company can use various types of promotion tools like advertisement, sales promotions, direct marketing and many more in order to communicate with the customers and create brand awareness among them. This is turn will help the company to increase its brand image which was lost due to the recent controversies faced by the company. Similarly in order to overcome its threats company should focus on reducing its cost of raw material. In order to reduce its raw material Cost Company should developed various strategy which will assist them to develop different stores format. New and different stores format will aid the company to beat its competitors. Therefore, Tesco should take into consideration following measures in order to solve the various problems and increase its brand image which was clashed due to bad debts and insurance claims by the customers. Buy our best strategic management assignment writing services for university scholars to secure top grades.


Types of the various stakeholders Stakeholders are the individuals who are interested in various operations of the company. They may get affected by the various activities that are taking place within and outside the organization (Freeman, 2010.). Types of stakeholders are available in every business organization i.e. internal and external stakeholders. Internal stakeholders get affect with the organization internal activities whereas external stakeholders are affected by the operations that are taking place outside the business organization. Therefore, various types of stakeholders are explained below:•

Employees: - Employees are the person who works for the company in order to achieve the organization desired goals and target. They simple want security of their livelihood. They want their employment security, compensation, respect and fair communication from the managers and its employer. Employee attitude and behaviour can also affect the sales and profit margin of the company both in negative and positive way.

Therefore, Tesco has tried to take all necessary measures which in turn will satisfy the employees working in the organization. Company has started conducting various types of training sections in order to motivate its employee to work properly within the organization. •

Shareholders: - Shareholders are the person who is interest in investing in the company. They simple want return on their investments and dividend. They want that company should on continuous basis in order to increase its profitability. Shareholders decision can affect the appointment of the board members. They have the right to vote for or against the entry of board members. They also have the right to take decision on various necessary matters.

Therefore, Tesco has taken all essential factors into consideration in order to increase its profitability which in turn will satisfy the shareholders. •

Government: - Government wants that every business unit should grow at an increasing rate. They also want that company should generate more and more employee opportunities, work for the betterment of the society and pay taxes on time. Introduction of fiscal policy by the UK government affects the profit margin of the company.

Therefore, as Tesco is the growing company, so it is easily able to satisfy the demand of the government. Buy our best strategic management assignment writing services for university scholars to secure top grades.


•

Local communities: - Local communities want that they should live a healthy life. They simple want that no type of pollution is made by the company which affects their day to day living. They want that company should create less noise and disturbance. These demands of the local community can affect the sales and profit margin of the company.

Moreover, Tesco has tried to take all the indispensable measures into consideration that satisfy the society. They have tried to reduce the various type of pollution that affects health of the individual present in the society as a whole. Henceforth, it is not easily to satisfy all the stakeholders demand. Different stakeholders have different interest. It is natural that the entire time one or the other conflict will be faced by the company. For example-if Tesco tries to satisfy the demand the local communities than it will cause reduction in sales. Reduction of sales will reduce the profitability which in turn dissatisfies the shareholders.

A Sample Report On Strategic Management

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CONCLUSIONS The following report emphasis on how the internal and external environment of an organization affects its working. The report also concludes the strategic position of the Tesco and how its Strategic position is different from its competitor’s position. It also shows how these strategies affect the working of the company. By conducting the Swot analysis strategic capabilities of the Tesco are also discussed. It is also discussed that how different types of stakeholders demand affect the working and decision making power of the company. In order satisfy the stakeholders demand company's sales and profitability is also affected. At last, suggestions are also provided to the company in order to improve its strategic position.

RECOMMENDATIONS In order to improve the strategic position of the company, company should take into consideration the cost leadership strategy. By using this strategy Tesco will be able meet all the expectations of its stakeholders. Company can also follow policy of acquisition in order to increase its sales. Similarly, other major strategy which company can take into consideration is change management. Change management must be a key concern when changing strategic direction. The process of change management can create the feeling of uncertainty among the employees. Therefore, in order to overcome this problem effective change management should be implemented in order to ensure optimal performance from the old and new employees. Thus, company should adapt change management process in order to mitigate the potential issue of the culture clash, which has negatively affected the company’s sales.

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REFERENCES Books and journal ⚫

Barry J. Witcher, Vinh Sum Chau., 2010. Strategic Management: Principles and Practice. Cengage Learning EMEA.

Beer, M. and et.al., 2005. Strategic management as organizational learning: Developing fit and alignment through a disciplined process. Long Range Planning. 38(5). pp. 445465.

Chrisman, J. J., Chua, J. H. and Sharma, P., 2005. Trends and directions in the development of a strategic management theory of the family firm. Entrepreneurship theory and practice. 29(5). pp. 555-576.

Freeman, R. E., 2010. Strategic management: A stakeholder approach. Cambridge University Press.

Henry , A., 2011. Understanding Strategic Management. OUP Oxford.

Hill, C., Jones, G. and Schilling, M., 2014. Strategic management: theory: an integrated approach. Cengage Learning.

Hitt, M., Ireland, R. D. and Hoskisson, R., 2012. Strategic management cases: competitiveness and globalization. Cengage Learning.

Hult, G.T.M., Ketchen, D.J. and Arrfelt, M., 2007. Strategic supply chain management: Improving performance through a culture of competitiveness and knowledge development. Strategic management journal. 28(10). pp.1035-1052.

Klein, D. A., 2009. The strategic management of intellectual capital. Routledge.

Nag, R., Hambrick, D. C. and Chen, M. J., 2007. What is strategic management, really? Inductive derivation of a consensus definition of the field. Strategic management journal. 28(9). pp. 935-955.

Nerur, S. P., Rasheed, A. A. and Natarajan, V., 2008. The intellectual structure of the strategic management field: An author co‐citation analysis. Strategic Management Journal. 29(3). pp. 319-336.

Postma, T. J. and Liebl, F., 2005. How to improve scenario analysis as a strategic management tool?. Technological Forecasting and Social Change. 72(2). pp.161-173.

Schilling, M. A., 2005. Strategic management of technological innovation. Tata McGrawHill Education.

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Schot, J. and Geels, F.W., 2008. Strategic niche management and sustainable innovation journeys: theory, findings, research agenda, and policy. Technology Analysis & Strategic Management. 20(5). pp. 537-554.

Thompson, L. J. and Martin, F., 2005. Strategic Management: Awareness

Lees, G. 2008. Strategic position. [pdf]. Available through http://www.cimaglobal.com/Documents/ImportedDocuments/cid_tg_strategic_position _mar08.pdf.pdf>. [Accessed on 26th Nov. 2015].

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A Sample Report On Strategic Management

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